State regulation of foreign economic activity. Non

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
Non-tariff barriers to trade (NTBs) are trade
barriers that restrict imports, but are unlike the
usual form of a tariff. Some common examples
of NTB's are anti-dumping (The selling of goods
abroad at prices below their marginal cost,
which implies that the seller is making a loss)
measures and countervailing duties, which,
although called non-tariff barriers, have the effect
of tariffs once they are enacted.

Their use has risen sharply after the WTO rules
led to a very significant reduction in tariff use.
Some non-tariff trade barriers are expressly
permitted in very limited circumstances, when
they are deemed necessary to protect health,
safety, sanitation, or depletable natural resources.

In other forms, they are criticized as a means to evade
free trade rules such as those of the World Trade
Organization (WTO), the European Union (EU), or
North American Free Trade Agreement (NAFTA) that
restrict the use of tariffs.

Some of non-tariff barriers are not directly
related to foreign economic regulations but
nevertheless have a significant impact on
foreign-economic activity and foreign trade
between countries.

Trade between countries is referred to trade in goods,
services and factors of production. Non-tariff barriers to
trade include import quotas, special licenses, unreasonable
standards for the quality of goods, bureaucratic delays at
customs, export restrictions, limiting the activities of state
trading, export subsidies, countervailing duties, technical
barriers to trade, sanitary and phyto-sanitary measures,
rules of origin, etc. Sometimes in this list they include
macroeconomic measures affecting trade.
Six Types of Non-Tariff Barriers to Trade
1) Specific Limitations on Trade:
1. Import Licensing requirements
2. Proportion restrictions of foreign domestic goods
(local content requirements)
3. Minimum import price limits
4. Fees
5. Embargoes
2) Customs and Administrative Entry
Procedures:
1. Valuation systems
2. Anti-dumping practices
3. Tariff classifications
4. Documentation requirements
5. Fees
3) Standards:
1.Standard disparities
2.Intergovernmental acceptances of
testing methods and standards
3.Packaging, labeling, and marking
4) Government Participation in Trade:
1.Government procurement policies
2.Export subsidies
3.Countervailing duties
4.Domestic assistance programs
5) Charges on imports:
1.Prior import deposit subsidies
2.Administrative fees
3.Special supplementary duties
4.Import credit discrimination
5.Variable levies
6.Border taxes
6) Others:
1.Voluntary export restraints
2.Orderly marketing agreements

Examples of Non-Tariff Barriers to Trade
non-tariff barriers to trade can be the following:

Import bans

General or product-specific quotas

Rules of Origin

Quality conditions imposed by the importing country on the exporting countries

Sanitary and phytosanitary conditions

Packaging conditions

Labeling conditions

Product standards

Complex regulatory environment
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